French luxury giant Kering is banking on a major shake-up to its creative leadership to shake it out of the slump it’s been in over the last year. Its latest appointment is Pierpaolo Piccioli, the long-time creative director of Valentino, who is taking over the stewardship of Balenciaga.
When the mononymous designer Demna moved from one of Kering’s overperforming brands, Balenciaga, to its most valuable yet struggling brand, Gucci, it left a void back at Balenciaga. Under Demna, Balenciaga flourished, growing its annual revenue from around $350 million to over $2 billion over the course of his tenure.
That proven money-making track record was needed at Gucci, which saw sales drop by 23% last year. Gucci makes up nearly half of Kering’s revenue, so a slump at Gucci is bad for the whole company. But with Demna moving on, Balenciaga needed a sure hand to continue Demna’s legacy.
Piccioli, who left Valentino last year, called his appointment a “passing of the torch” from Demna to himself, while also laying out his own vision of Balenciaga.
“Balenciaga is what it is today thanks to all the people who have paved the way,” Piccioli said in a press release. “In all its phases, while constantly evolving and changing, it has never lost track of the House’s aesthetic values. What I am receiving is a brand full of possibilities that is incredibly fascinating. This gives me the chance to shape a new version of the Maison, adding another chapter with a new story.”
While Demna’s Balenciaga embraced streetwear and youth culture, Piccioli is more of a classicist. His time at Valentino was marked by a grandiose, romantic aesthetic that could also veer a bit old-fashioned. Valentino has struggled in the last few years, with profits slipping by 3% in 2023 and 22% in 2024.
Kering seems hopeful that Balenciaga under Piccioli can continue to grow its haute couture business, which was revived in 2021 under Demna. The brand had not produced any couture collections since the death of founder Cristobal Balenciaga in 1972.
“[Piccioli] is one of the most talented and celebrated designers of today,” said Francesca Bellettini, Kering’s deputy CEO in charge of brand development in a press statement. “His mastery of Haute Couture, his creative voice and his passion for savoir-faire made him the ideal choice for the House. I am convinced that Pierpaolo and Gianfranco [Gianangeli, Balenciaga’s new CEO as of last November] will lead Balenciaga perfectly through this important new chapter of its remarkable history.”
The focus on the highest echelon of fashion, haute couture, is notable given the overall slump that the luxury industry is facing. At a time when companies like Kering are struggling, the most expensive and exclusive brands, like Hermés and Chanel, are faring quite well. Hermés posted a 17% increase in annual revenue in February.
“Piccioli’s appointment is a true power move,” said fashion, culture and business consultant Marissa Andrada. “Valentino is 30% owned by Kering, and fashion’s inner circle remains small, influential and highly interconnected. A known talent, Piccioli is a proven creative force poised to bring a foundation-setting vision to Balenciaga while staying aligned with Kering’s values.”
